Texas sues biggest TV makers, alleging smart TVs spy on users without consent

When consumers first start up a Samsung smart TV, they “must click through a multipage onboarding flow before landing on a consent screen, titled Smart Hub Terms & Conditions,” the lawsuit said. “Upon finally reaching the consent screen, consumers are presented with four notices: Terms & Conditions: Dispute Resolution Agreement, Smart Hub U.S. Policy Notice, Viewing Information Services, and Interest-Based Advertisements Service U.S. Privacy Notice, with only one button prominently displayed: I Agree to all.”

Deceptive trade practices alleged

It would be unreasonable to expect consumers to understand that Samsung TVs come equipped with surveillance capabilities, the lawsuit said. “Most consumers do not know, nor have any reason to suspect, that Samsung Smart TVs are capturing in real-time the audio and visuals displayed on the screen and using the information to profile them for advertisers,” it said.

Paxton alleges that TV companies violated the state’s Deceptive Trade Practices Act with misrepresentations regarding the collection of personal information and failure to disclose the use of ACR technology. The lawsuit against Hisense additionally alleges a failure to disclose that it may provide the Chinese government with consumers’ personal data.

Hisense “fails to disclose to Texas Consumers that under Chinese law, Hisense is required to transfer its collections of Texas consumers’ personal data to the People’s Republic of China when requested by the PRC,” the lawsuit said.

The TCL lawsuit doesn’t include that specific charge. But both the Hisense and TCL complaints say the Chinese Communist Party may use ACR data from the companies’ smart TVs “to influence or compromise public figures in Texas, including judges, elected officials, and law enforcement, and for corporate espionage by surveilling those employed in critical infrastructure, as part of the CCP’s long-term plan to destabilize and undermine American democracy.”

The TVs “are effectively Chinese-sponsored surveillance devices, recording the viewing habits of Texans at every turn without their knowledge or consent,” the lawsuits said.